Teuscher Walpole, LLC – Teuscher Walpole, LLC is a full service accounting firm providing tax, audit and consulting services. We provide expertise, and a diversified service offering. We genuinely care about our clients and their success. Teuscher Walpole, LLC will listen to your needs and provide real world, cost effective solutions. Our experts are industry leaders whose background and experience will provide optimum results for our clients. Clients rely on our expertise so they can maximize their results while still focusing on their core competencies. We always tailor our solutions to individual client needs. Our work is accurate, timely and cost effective.

 

 

 

 

If you or your business have constructed, renovated or purchased real estate, then a Cost Segregation Study could be invaluable to your short-term cash flow and long-term financial strategy. A Cost Segregation Study is the process to identify personal property assets that often get buried or lumped together with real property assets for tax reporting purposes.

 

Generally, an investment in real estate is depreciable over 39 or 27.5 years. The primary goal of a Cost Segregation Study is to identify all construction-related costs that can be depreciated over 5, 7 and 15 years. This, in turn, accelerates depreciation expense and decreases taxable income. As a taxpayer, you pay less tax during the early stages of a property's life, providing you with improved after-tax cash flows.

What Are The Benefits of a Cost Segregation Study?

1.  Reduces taxable income and creates a current tax savings.

2.  Generates immediate increase in cash flows through accelerated depreciation deduction.

3.  Provides an opportunity to claim “catch up” depreciation on previously misclassified assets.

When Should a Cost Segregation Study Be Performed?

The ideal time for a Cost Segregation Study varies depending on the client’s tax situation.  Our team of engineers and tax professionals work closely with our clients to determine the right timing for the study. Cost Segregation opportunities include:

 

1. New Construction

2. Acquisition of an Existing Property

3. Renovation, Remodel or Expansion of an Existing Building

4. Leasehold Improvements

5. Sale of Property

6. Leaseback

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